NEW YORK CITY (By Bloomberg News)
November 10, 2005 — Microsoft said yesterday that it would develop a news
video distribution network for The Associated Press and share in advertising
revenue generated by the newspapers and broadcasters that use it.
The A.P. Online Video Network will be
available to the news service's 3,500 United States newspaper and broadcast
members at no charge in the first quarter of next year, the companies said.
The agreement builds on the MSN Video
service, which Microsoft started in January 2004, said Todd Herman, director
of MSN advertising and business strategy. That service, which offers video
from TV networks including NBC, Showtime and the Discovery Channel, has had
a 400 percent rise in revenue, he said.
The A.P., a nonprofit cooperative based in
New York, will initially provide about 50 video clips a day covering
national, international, entertainment, technology and business news. The
A.P. said it would retain full editorial control over the content.
The MSN unit of Microsoft will provide the
software-based video player, the technical support and the network capacity
for the service. MSN will also sell the advertising and develop other
network products, including local advertising and content syndication
systems.
"The combination will enable our
advertisers to better reach the huge audience of people who now turn
primarily to the Internet for their information," Mr. Herman said in a
statement.
